Terraform Labs and Do Kwon to pay $4.5 billion to SEC

[bbc.reporter]

It appears uncle Gary and the SEC will also get their billions after they were not included from Binance's $4.32 billion fine payment hehehhee. Binance's payment went to the department of justice and the department of treasury. Everyone was scratching their heads on why uncle Gary's department was not included on this, however, it appears that the also has his own victory hehehehe.



Terraform Labs and its former CEO Do Kwon have agreed to a settlement agreement with the U.S. Securities and Exchange Commission (SEC) that would see them forking over a combined $4.5 billion in disgorgement and civil penalties.

The settlement agreement, which was filed Wednesday, would also permanently ban Kwon and Terraform Labs from buying and selling crypto asset securities – including all of the tokens in the Terra ecosystem.

Read in full https://www.coindesk.com/policy/2024/06/12/terraform-labs-do-kwon-agree-to-pay-sec-a-combined-45b-in-civil-fraud-case/

[zasad@]

Terraform Labs shaved the hamsters, the SEC shaved Terraform Labs - long live the fairest fair trial in the US
Ha, ha. Now the market will be led by other manipulators whose existence is not proven

[pakhitheboss]

Some of these fines that the SEC or DOJ have been extorting from cryptocurrency exchanges or scammers are more than a few countries USD reserves. To add to that thought it is more than the GDP of a few countries, what they are doing with Do Kwon is justified. I am frustrated to see scammers having enough money to pay off the US authorities.

If that shit of an individual is going to pay the US government entity then he would have sufficient amount in his kitty to refund those who blindly followed him and invested in his scam. And none of these US government entities will be able to get this scammer to pay those who innocently invested in the scams that is most sad part, as they say they will pay but never do it or delay it, till they can hide their gained amounts.

[Lucius]

As we speculated, the reason for not extraditing Do Kwon to any country that wanted him was that there were negotiations about how many billions of $ a minimum sentence or even freedom would cost him - apparently the SEC and other US institutions have a measure that starts from $4 billion and goes up.

Now it remains to be seen how things will develop later, although money obviously buys everything, including freedom - and Uncle Gary will get a nice commission on a new yacht for his retirement days

[dansus021]

After I watch this news there is also another news that said Terraform Labs ends operations, Terra community takes over - https://cointelegraph.com/news/terraform-labs-shuts-down-community-leads-terra#

So basically know terra is community owned after terraform labs shutting down damnnnn all of this because of the UST and turned into bankruptcy even in the bull market like today.

"Chris Amani, CEO of Terraform Labs, has announced that the firm will cease operations following a $4.47 billion settlement with the United States (U.S.) Securities and Exchange Commission (SEC). [Terraform Labs] always intended to dissolve at some point and that point is now. We will be winding down operations completely [...] We were well positioned to accelerate things if we had won the trial, but unfortunately, we lost and as a result, can no longer operate.” "

[bbc.reporter]

As we speculated, the reason for not extraditing Do Kwon to any country that wanted him was that there were negotiations about how many billions of $ a minimum sentence or even freedom would cost him - apparently the SEC and other US institutions have a measure that starts from $4 billion and goes up.

Now it remains to be seen how things will develop later, although money obviously buys everything, including freedom - and Uncle Gary will get a nice commission on a new yacht for his retirement days

Heheheh yes. After what uncle Gary did to the cryptospace, we can be quite certain that he cannot get a job on an advisory role in any crypto company for retirement money. He would be an unpopular choice and the company might be boycotted by the community if he was hired hehehe.

Does this victory for him also imply that this has encouraged him and he will be more aggressive on his crackdown? His term will end on 2026.

[yhiaali3]

So a new deal for Uncle Gary and the SEC worth $4.5 billion in violations and civil penalties!! I wonder where these billions will go? What will users who lost money gain from this deal?

How does American law allow these deals to take place before those affected are fully compensated? It has become clear that the whole issue is about money and not protecting users as they claim. The more money you have, the more you can commit the crimes you want without punishment.

[zasad@]

So a new deal for Uncle Gary and the SEC worth $4.5 billion in violations and civil penalties!! I wonder where these billions will go? What will users who lost money gain from this deal?

How does American law allow these deals to take place before those affected are fully compensated? It has become clear that the whole issue is about money and not protecting users as they claim. The more money you have, the more you can commit the crimes you want without punishment.

You really don't understand what happened, do you?
SEC beat Terraform Labs to a lucrative settlement.
Terraform Labs will go into bankruptcy and SEC will be first in line for payment. It's all legal.
The interests of the aggrieved investors are the investors' problem.

[Lucius]

Heheheh yes. After what uncle Gary did to the cryptospace, we can be quite certain that he cannot get a job on an advisory role in any crypto company for retirement money. He would be an unpopular choice and the company might be boycotted by the community if he was hired hehehe.
Does this victory for him also imply that this has encouraged him and he will be more aggressive on his crackdown? His term will end on 2026.

There is always work for people like him, he is part of the system and the system takes care of people like him - because he is successful in what he does, right? His "aggressiveness" will continue as long as he is the head man of the SEC, although it remains unknown what will happen if the American people elect a new president, and what his influence will be on people like Gensler, considering that Trump presents himself as the biggest fan of cryptocurrencies in the world.

The way things look now, it seems that the US could become the second country in the world to declare BTC legal tender (joking of course)

[yhiaali3]

You really don't understand what happened, do you?
SEC beat Terraform Labs to a lucrative settlement.
Terraform Labs will go into bankruptcy and SEC will be first in line for payment. It's all legal.
The interests of the aggrieved investors are the investors' problem.

Thank you for the clarification. I really do not understand what happened and I do not understand American law. As far as I know, in bankruptcy the company liquidates all of its properties and bank accounts to pay as much of these obligations as possible and then exits the labor market.

I thought (and this is how it should be) that bankruptcy means that all assets are seized and distributed among the creditors fairly according to the size of the debt. It means that you pay a part or a percentage to all the creditors and not just the first creditor on the list. This is not fair at all.

[zasad@]

You really don't understand what happened, do you?
SEC beat Terraform Labs to a lucrative settlement.
Terraform Labs will go into bankruptcy and SEC will be first in line for payment. It's all legal.
The interests of the aggrieved investors are the investors' problem.

Thank you for the clarification. I really do not understand what happened and I do not understand American law. As far as I know, in bankruptcy the company liquidates all of its properties and bank accounts to pay as much of these obligations as possible and then exits the labor market.

I thought (and this is how it should be) that bankruptcy means that all assets are seized and distributed among the creditors fairly according to the size of the debt. It means that you pay a part or a percentage to all the creditors and not just the first creditor on the list. This is not fair at all.

Well yes, the SEC will rightly take the biggest chunk of the bankrupt company's assets and be the first priority beneficiary.
But I also want to say that there is no information about Do Kwon's extradition, and this story is probably not over yet.

[yhiaali3]

Well yes, the SEC will rightly take the biggest chunk of the bankrupt company's assets and be the first priority beneficiary.
But I also want to say that there is no information about Do Kwon's extradition, and this story is probably not over yet.

If Do Kwon is extradited and imprisoned it will be somewhat fair, though I doubt he won't be imprisoned for such a big deal.

Anyway, I also have a question about the money that the SEC will take as a fine, which is large, about $4.32 billion. What will be the fate of this money? I mean, will the SEC keep it for itself or will it be transferred to the US Treasury? How are they handled according to American law?

[Quickseller]

The headline is inaccurate, as is the statement made by the SEC lawyer that was in the article.

Terraform Labs is in bankruptcy, has close to zero assets, and its liabilities far exceed its assets. The SEC will become a general creditor and will get nothing. According to the article, Kwon needs to pay ~$200m, but I am not sure what assets he has, if any. I wouldn't be surprised if he has none.

IMO the judge should reject the settlement, as it will do nothing except cost the SEC money when it has to be represented by bankruptcy lawyers in the Terraform bankruptcy case.

[zasad@]

https://www.theblock.co/post/299886/terraform-labs-dissolve-ceo-community-settlement

"Chris Amani, CEO of Terraform Labs, said the firm plans to dissolve its operations.
Amani urged the community to take over the reins of the Terra network."


___
yhiaali3, I think Do Kwon is negotiating this now, otherwise he will have to be in Montenegro for the rest of his life. This was most likely the first stage of the deal, and after the payments, Do Kwon will negotiate a small prison sentence in the US.

[zasad@]

https://fortune.com/crypto/2024/06/13/sec-hits-crypto-firm-terraform-with-4-5-billion-penalty/

"The SEC hits crypto firm TerraForm with a $4.5 billion penalty—but no one is going to pay it
Gary Gensler is at it again. His agency, the Securities and Exchange Commission, asked a federal judge to approve a settlement that requires TerraForm and its criminal founder, Do Kwon, to pay $4.47 billion to resolve civil charges related to the collapse of the scammy UST stablecoin. In a letter to the court, the SEC declares, “The entry of this judgment would ensure the maximal return of funds to harmed investors and put TerraForm out of business for good.”

[o48o]

It appears uncle Gary and the SEC will also get their billions after they were not included from Binance's $4.32 billion fine payment hehehhee. Binance's payment went to the department of justice and the department of treasury. Everyone was scratching their heads on why uncle Gary's department was not included on this, however, it appears that the also has his own victory hehehehe.

Terraform Labs and its former CEO Do Kwon have agreed to a settlement agreement with the U.S. Securities and Exchange Commission (SEC) that would see them forking over a combined $4.5 billion in disgorgement and civil penalties.

The settlement agreement, which was filed Wednesday, would also permanently ban Kwon and Terraform Labs from buying and selling crypto asset securities – including all of the tokens in the Terra ecosystem.

Read in full https://www.coindesk.com/policy/2024/06/12/terraform-labs-do-kwon-agree-to-pay-sec-a-combined-45b-in-civil-fraud-case/

So, this was just the civil fraud case, and he is still waiting for criminal charges about terra. I am seriously hoping he will sit rest of his life in jail. So many people lost everything, because Kwon decided not to act when pointed out why Terra won't work.

And how come people hate CZ and SBF so intensively. At least they collaborated with authorities, but when it comes to Do Kwon, i can't see similar loath for him. I mean man did everything he could to piss off so many. He was publicly insulting people who were pointing out the flaws in the Terra, and was arrogant and obnoxious on every turn. Even after the crash he went literally on the run with a falsified passport. He had knowledge and power to stop the crash and he CHOSE not to do it, he wasn't being ignorant, but arrogant.

I am wondering if Do Kwon is ever regretting that he didn't "debate with poor people".

[BlockExplorer24]

Hey @bbc.reporter,

Wow, Terraform Labs and Do Kwon hit with a $4.5 billion penalty by the SEC! Looks like Uncle Gary and the SEC are raking in their billions. First Binance, now this – the SEC must be loving it. It’s a hefty fine, but given the magnitude of the issues with Terra, it seems like they’re making a strong statement.

This could have major implications for the Terra ecosystem and all its token holders. It’s crazy how these penalties are stacking up. I wonder what this means for the Terra ecosystem and all its token holders. Guess we’ll be watching this drama unfold for a while. What a rollercoaster!


Hello @o48o,

I see your point, but let’s not jump to conclusions. The civil fraud case is serious, but let’s not forget that these settlements aim to compensate those affected and enforce compliance.

As for CZ and SBF, their collaboration with authorities doesn't erase their controversies. Do Kwon’s actions were undeniably reckless, but comparing levels of loathing doesn't change the accountability each must face.

Let’s focus on the facts and wait for the criminal proceedings to unfold.

[Quickseller]

Hey @bbc.reporter,

Wow, Terraform Labs and Do Kwon hit with a $4.5 billion penalty by the SEC! Looks like Uncle Gary and the SEC are raking in their billions. First Binance, now this – the SEC must be loving it. It’s a hefty fine, but given the magnitude of the issues with Terra, it seems like they’re making a strong statement.

The SEC is not going to receive anything.

Terraform has few assets and debt that has priority over the SEC far exceeding its assets.

[zasad@]

Hey @bbc.reporter,

Wow, Terraform Labs and Do Kwon hit with a $4.5 billion penalty by the SEC! Looks like Uncle Gary and the SEC are raking in their billions. First Binance, now this – the SEC must be loving it. It’s a hefty fine, but given the magnitude of the issues with Terra, it seems like they’re making a strong statement.

The SEC is not going to receive anything.

Terraform has few assets and debt that has priority over the SEC far exceeding its assets.

Terraform Labs has already reached a settlement agreement for $4.5 billion.
After all the complicated procedure, SEC will get its money and I have no doubt about it, but most investors will most likely get nothing.
The fate of the money has long been clear to me, because it will remain in the American budget, but I just don’t understand yet what kind of prison term Do Kwon will receive in the US or whether he will remain in Montenegro and replenish their budget